UGI plans vigorous gas blast defense

Pennsylvania PUC is to litigate its case against the gas utility in early 2013, although a settlement is being discussed.

September 26, 2012|By Scott Kraus and John L. Micek, Of The Morning Call

An administrative law judge on Tuesday gave lawyers for UGI Utilities and the Pennsylvania Public Utility Commission until Oct. 5 to come up with a schedule for litigating the utility regulator's case against UGI over a deadly February 2011 gas explosion in Allentown.

At a brief proceeding in Harrisburg, Judge David Salapa said he would then schedule a hearing for January or February that would involve 10 or more witnesses and last about four days.

The PUC expects to complete the evidence discovery process in November, and is simultaneously discussing a settlement with the Reading-based gas company. Commission spokeswoman Jennifer Kocher could not say where those talks stand.

UGI attorney David B. MacGreggor said there are no immediate plans to ask the court to keep from public view the results of the discovery process, but that would depend on "the scope and type of discovery."

In a complaint against UGI filed in June, PUC investigators said the utility failed to ensure adequate levels of an odorant that is added to natural gas to help customers detect leaks, failed to react to indications that the aging pipes in the area needed repair, failed to adequately survey its lines in the area and had deficiencies in its emergency response.

UGI, based in Reading, has disputed the investigators' conclusions.

In legal papers filed Friday, the utility said it would demonstrate that its odorant sampling program complies with federal and state guidelines and that odorant levels in the cast iron pipe system that supplied gas to the neighborhood were adequate on the night of the explosion.

It also plans to show that its response to the blast complied with federal and state regulations and was initially hindered by the perimeter set up by city fire crews fighting the fires caused by the gas explosion. The utility said it would demonstrate that it did not have any forewarning of the blast because the pipeline that burst was "not a candidate for immediate replacement" under the company's risk criteria.

After the explosion, UGI announced it would accelerate the replacement of aging cast-iron pipelines in Allentown.

If the utility and PUC prosecutors cannot reach a settlement, both sides will present evidence to the administrative law judge, who would rule on the matter. The judge's decision could be appealed by either side, giving the PUC commissioners the final say.

Relatives of Ben, Cruz and Vega have filed a wrongful-death lawsuit against UGI. Family members of the Halls settled with UGI last year.